Stephen Miran’s Fed Confirmation Hearing Puts Independence in Spotlight

WASHINGTON, Sept. 4, 2025 - Stephen Miran, President Donald Trump’s nominee to the Federal Reserve Board of Governors, faced intense questioning Thursday as he appeared before the Senate Banking Committee for his confirmation hearing.

Miran, a former hedge-fund strategist and recent White House economic advisor, affirmed his commitment to preserve the Fed’s autonomy, stating that monetary policy decisions must be “grounded solely in analysis and the long-term health of the economy” rather than political considerations. He told senators that he views “preventing depressions and hyperinflations” as the Fed’s paramount duty and emphasized that “independence of monetary policy is essential for its effectiveness”.

During his opening remarks, Miran disclosed that he would take an unpaid leave of absence from his White House position if confirmed to fill the unexpired term ending in January, rather than resign outright. He pledged that, if subsequently renominated for a full term, he would fully sever ties with the administration.

Republican senators, eager to secure Miran’s vote ahead of the Fed’s September 16-17 meeting, indicated plans to expedite his confirmation. Committee Chair Sen. Tim Scott (R-S.C.) underscored the importance of Miran’s presence on the Board before policymakers convene to set interest rates.

However, Democrats criticized the timing and process, warning that Miran’s close ties to the White House could compromise his independence. Ranking Member Sen. Elizabeth Warren (D-Mass.) and others questioned whether he would serve “as an independent voice at the Fed or merely serve Donald Trump”. Sen. Jack Reed (D-R.I.) argued that Miran’s decision to retain his White House role “seriously compromised” his ability to act autonomously.

Miran, who co-authored a 2024 memo advocating stricter limits on the revolving door between the Fed and the executive branch, reiterated his belief that governors should be insulated from political pressure for several years after leaving office. He also supported shorter Fed terms and broader dismissal powers for the president, proposals aimed at increasing accountability but criticized by opponents as threats to central-bank independence.

As the hearing concluded, Miran expressed willingness to consider input from various sources but insisted that his ultimate decisions “will be based on my own personal analysis of economic data”. The committee is expected to vote on his nomination later this month, with full Senate action possible before the Fed’s next policy meeting.